Looking for the best thematic mutual funds to align your investments with tomorrow’s trends? Thematic funds let you invest in specific, high-potential ideas—like green energy, digital India, or healthcare innovation—that are set to shape India’s future.
In this guide, we’ll explore the Top 10 Best Thematic Mutual Funds in 2025, their performance, and why they’re poised to deliver strong long-term returns.
Why Invest in Thematic Mutual Funds?
- Future-Focused Growth: Thematic funds tap into transformative trends early. For example, India’s push for renewable energy or expanding digital infrastructure offers massive growth potential.
- Passionate Investing: You invest in ideas you believe in—like EVs, AI, or affordable housing—making your portfolio personal and purposeful.
- Professional Management: Skilled fund managers identify the best stocks within a theme, saving you the effort of picking individual companies.
- High Return Potential: When a theme gains momentum, returns can outpace broader markets.
Key Factors to Pick the Best Thematic Funds:
- Theme Relevance: Choose themes backed by long-term trends, not short-term fads.
- Fund Manager Expertise: A manager’s experience in navigating thematic cycles matters.
- Expense Ratio: Lower costs (ideally below 1.25%) help maximize returns.
- Consistency: Check 3–5 year returns to gauge performance across market phases.
Also read our article about: 5 Blue Chip Mutual Funds That Are Stealing the Spotlight in 2025
10 Best Thematic Mutual Funds (2025):
Here are the best thematic mutual funds in India for 2025, carefully selected based on their recent performance, 3-year CAGR, and assets under management (AUM). These funds capture India’s biggest growth themes such as PSU reforms, manufacturing expansion, commodities, services, and housing.
| Fund Name | Theme Focus | 3Y CAGR (%) | AUM (₹ Cr) |
|---|---|---|---|
| SBI PSU Fund | Public Sector Units | 32.05% | 5,278 |
| Franklin India Opportunities Fund | Special Situations | 31.88% | 7,376 |
| Invesco India PSU Equity Fund | PSU Companies | 31.67% | 1,391 |
| Aditya Birla SL PSU Equity Fund | PSU Companies | 30.72% | 5,418 |
| ICICI Prudential Manufacturing Fund | Manufacturing Sector | 26.86% | 6,602 |
| ICICI Prudential Commodities Fund | Commodities | 21.44% | 2,919 |
| Sundaram Services Fund | Services Sector | 19.45% | 4,333 |
| ICICI Prudential Exports and Services Fund | Export-Oriented | 19.36% | 1,369 |
| HDFC Housing Opportunities Fund | Housing & Infra | 17.87% | 1,285 |
| Edelweiss Recently Listed IPO Fund | New IPOs | 15.74% | 924 |
1. SBI PSU Fund
Theme Focus: Public Sector Units
3-Year CAGR: 32.05%
AUM: ₹5,278 Crore
Overview: The SBI PSU Fund is among the best thematic mutual funds focused on India’s public sector companies. With the government’s strong reform push and improved efficiency in PSUs, this fund has delivered exceptional returns in recent years. It’s ideal for investors who believe in India’s PSU revival story.
2. Franklin India Opportunities Fund
Theme Focus: Special Situations
3-Year CAGR: 31.88%
AUM: ₹7,376 Crore
Overview: This fund invests in companies that are undergoing structural or cyclical changes — mergers, turnarounds, or growth phases. It’s one of the best thematic mutual funds for investors looking for opportunities beyond conventional sectors.
3. Invesco India PSU Equity Fund
Theme Focus: PSU Companies
3-Year CAGR: 31.67%
AUM: ₹1,391 Crore
Overview: The Invesco India PSU Equity Fund benefits from the government’s disinvestment plans and improving profitability of state-run enterprises. It focuses on financially strong PSUs across energy, banking, and infrastructure.
4. Aditya Birla Sun Life PSU Equity Fund
Theme Focus: Public Sector Units
3-Year CAGR: 30.72%
AUM: ₹5,418 Crore
Overview: This fund focuses on well-managed PSU companies with high dividend yields. With strong returns and diversified holdings, it stands among the best thematic mutual funds in 2025 for stable yet growth-oriented investors.
5. ICICI Prudential Manufacturing Fund
Theme Focus: Manufacturing Sector
3-Year CAGR: 26.86%
AUM: ₹6,602 Crore
Overview: This fund capitalizes on India’s “Make in India” and industrial expansion initiatives. It invests in auto, capital goods, and industrial manufacturing companies. Ideal for investors who want to ride India’s manufacturing boom.
6. ICICI Prudential Commodities Fund
Theme Focus: Commodities
3-Year CAGR: 21.44%
AUM: ₹2,919 Crore
Overview: The ICICI Prudential Commodities Fund offers exposure to metals, mining, and energy companies benefiting from rising global demand. It’s a good pick among the best thematic mutual funds for those who want to participate in the commodities supercycle.
7. Sundaram Services Fund
Theme Focus: Services Sector
3-Year CAGR: 19.45%
AUM: ₹4,333 Crore
Overview: This fund invests in India’s growing services sector — IT, telecom, hospitality, and financial services. With the economy shifting towards service-driven growth, this fund offers balanced exposure with steady returns.
8. ICICI Prudential Exports and Services Fund
Theme Focus: Export-Oriented Companies
3-Year CAGR: 19.36%
AUM: ₹1,369 Crore
Overview: The fund focuses on Indian exporters and global service providers, benefiting from the rising global demand for Indian products and services. It’s among the best thematic mutual funds for investors seeking global-linked growth.
9. HDFC Housing Opportunities Fund
Theme Focus: Housing and Infrastructure
3-Year CAGR: 17.87%
AUM: ₹1,285 Crore
Overview: India’s real estate and housing market is on the rise again. This fund invests in companies connected to housing, infrastructure, and construction materials. It’s ideal for investors who believe in India’s urban growth story.
10. Edelweiss Recently Listed IPO Fund
Theme Focus: Newly Listed IPOs
3-Year CAGR: 15.74%
AUM: ₹924 Crore
Overview: This fund invests in newly listed companies that show strong business potential. While slightly more volatile, it’s one of the best thematic mutual funds for investors seeking exposure to India’s emerging new-age businesses.
Conclusion About Best Thematic Mutual Funds:
The best thematic mutual funds let you invest in India’s most exciting growth stories—from tech and manufacturing to green energy and healthcare. While these funds offer high potential, they also carry risks if a theme loses steam.
Start with an SIP, diversify across 2–3 themes, and stay invested for 5+ years to maximize gains. Always consult a financial advisor to match these funds with your goals. Here’s to investing in the future!
Disclaimer: Mutual funds are subject to market risks. Read all scheme-related documents carefully. Past performance doesn’t guarantee future returns.
FAQs About 10 Best Thematic Mutual Funds:
1.Which is the best thematic mutual fund?
SBI PSU Fund is currently the best-performing thematic mutual fund with a 3Y CAGR of 32.05%. It benefits from strong government reforms and rising PSU valuations.
2.Is it good to invest in thematic funds?
Thematic funds can deliver high returns by riding specific macro trends, but they carry concentrated risk. Ideal for tactical allocation, not core portfolio holding.
3.Which sectoral fund is best?
ICICI Prudential Infrastructure Fund is the best sectoral fund in 2025 with a 5Y CAGR of 33.46%. It benefits from India’s capex boom and strong infra-led growth.